Archived Posts 2013 - Page 16 of 239 | Acton PowerBlog

caremergencyYesterday I began a series of posts which attempts to explain why the working poor tend to make terrible financial decisions and how they think about money differently than other economic classes. In my initial post I wrote,

Imagine that instead of having to deal with consumption smoothing decisions, at most, several times a year, you had to deal with them several times a month, or even several times a week. Now also imagine there is no workable solution that will actually smooth the short-term consumption problem and the best that you can hoped for is a temporary fix that delays having to deal with the issue.
That is what it’s like to be the working poor.

Several people have asked me to explain more what I meant, so before moving on I wanted to provide a more in depth example.

Let’s again begin by looking at the decision-making process of the middle-class. Imagine that you want to buy a home. Your household income is $51,404 a year (the median household income in the U.S.) and the house you’re interested in is on the market for $152,000 (the avg. home price in the U.S.). At what point do you buy the house?

There are several ways the average American may answer, but the one response you will almost never hear is, “You should buy the house only after you’ve saved the $152,000 needed to pay for it.”

While most people would agree that it would be prudent to apply a down payment, the idea that you’d pay the entire amount at once – even if you had $152,000 in cash – would strike most people as peculiar if not absurd. Instead, we borrow money for a mortgage that will allow us to pay a set amount each month for 15 to 30 years. Because we are willing to spread our payments out into the future we will pay a lot more than the $152,000 (at 5% for 30 years, the total would be $293,748.79). But we consider that a reasonable accommodation for getting what we want right now.

That is an example of how most of us take the concept of consumption smoothing for granted.

no-religion_designIncreasingly, Americans who adhere to a religion are told they cannot “force their beliefs” on others. Simply stating publicly that one doesn’t believe gays have the right to marry can cost you your career. Literally hundreds of lawsuits are now in motion against the government because employers do not want to be forced to violate their religious beliefs by paying for employees’ contraception and/or abortions.

Richard W. Garnett ponders this topic in today’s Los Angeles Times. Garnett takes the reader back just 20 years, when he says the government did something right:

Lawmakers from both parties and across the political spectrum found common ground and passed, by a near-unanimous vote, the Religious Freedom Restoration Act, which firmly commits the federal government to protecting and promoting our “inalienable right” to freely exercise religion. As President Clinton remarked when he signed the legislation into law, “the power of God is such that even in the legislative process, miracles can happen.”


PovertyCure- DR 2PovertyCure is an international network of organizations and individuals seeking to ground the common battle against global poverty in a proper understanding of the human person and society, and to encourage solutions that foster opportunity and unleash the entrepreneurial spirit that already fills the developing world. (more…)

Acton On The AirContinuing our roundup of Acton comment on Evangelii Gaudium, here’s Acton’s Director of Research and Author of Tea Party Catholic Samuel Gregg joining host Al Kresta on Ave Maria Radio’s Kresta in the Afternoon to discuss Pope Francis’ Apostolic Exhortation, with particular emphasis on its economic elements. This interview took place on Monday, December 2nd.

DetroitInstituteoftheArts2010AEarlier this year I argued for a plan that would privatize the DIA, allowing for the City of Detroit to cash in on a measure of the collection’s worth to satisfy creditors and simultaneously protect the DIA’s artwork from being parceled out in bankruptcy proceedings. At the time, I had doubts about the practicability of the idea. I figured that even if such a path were to be pursued that the DIA would likely end up torn apart like a chew toy. Once the city’s creditors realize that they might be able to extract something of value from the DIA, they have all the incentive in the world to demand an exorbitant price for privatizing the DIA. Likewise the city officials would have a massive bargaining chip they could use to extract as much as possible from potential donors.

I still have doubts about the privatization plan’s practicability, but the prospects do seem a bit brighter now that Judge Gerald Rosen has determined that the City of Detroit is eligible to file for bankruptcy. This is because Judge Rosen is one of the leading advocates for a privatization plan. Rumors like this have been simmering in the media for weeks, but according to the Detroit Free Press, now “some of the city’s most powerful leaders are working furiously to fashion a grand bargain in which nonprofit foundations would put up $500 million to spin off the Detroit Institute of Arts from the city, and that money would be used to reduce pension cuts and help rebuild city services.” Apparently Judge Rosen is using his influence to encourage “some of the country’s largest charitable foundations and their smaller local cousins to pony up the money.”

disapear doctorNo, it’s not a Sherlock Holmes book. It’s reality: American is losing doctors.

When most of us have a medical concern, our first “line of defense” is the family physician: that person who checks our blood pressure, keeps on eye on our weight, looks in our ears and our throat for infections, and does our annual physicals. And it’s these doctors that are becoming scarce.

In American Spectator, Acton Research Fellow Jonathan Witt takes a look at this issue. (more…)

Blog author: jcarter
Thursday, December 5, 2013

Rousseau on the Reformation
Jordan Ballor, The Calvinist International

In a recent interview, the historian Molly Worthen describes her investigation into the relationship between evangelicals and authority, and provides an explanation that what is often identified as evangelical “anti-intellectualism” is actually a struggle to reconcile different sources of authority.

Ukrainian Protesters Find Powerful Ally in Orthodox Church
David M. Herszenhorn, New York Times

In recent days, the Kyivan Patriarchate, which controls St. Michael’s, has emerged as a powerful ally of the thousands of protesters demanding the resignation of President Viktor F. Yanukovich and the revival of the far-reaching political and trade accords with the European Union that he has refused to sign.

Obama’s corporatist contraceptive mandate
Timothy P. Carney, Washington Examiner

Look at the contraception mandate from almost any angle, and you see the corporatism. Sometimes it’s on the surface, and sometimes it’s implicit in the arguments.

Fighting Poverty With Actual Evidence
Stephen J. Dubner, Freakonomics

What are the best evidence-based ways to alleviate poverty?